Lamda Development: breaking ground (stays BUY)
We reiterate our BUY rating on Lamda Development (Lamda), increasing our 12M price target (PT) to EUR 9.0/share. Lamda remains our favourite play on Greek real estate. The tenant sales and rents continue to grow in tandem in its portfolio of four well-known shopping centres. The likely ECB rate easing ahead could make it easier for Lamda to sell a stake in the MallCo via an IPO, perhaps at some point in 2025E, a potential boost for sentiment. The fully-occupied marinas also generate good returns, which are likely to jump once the first phase of the Ellinikon has been completed. Also, the demand for the residential units at the Ellinikon seems strong, with apartments selling at prices 5-10% above the budgeted levels. We also appreciate the 137k sqm forward land sales to third-party developers, closed this summer, which brings forward both cash inflows (EUR 226m) and profits (EUR 158m, an 11% NAV uplift). The limited visibility on the Ellinikon capex and, in turn, the margins and cash flows that the project can deliver, are the key risk, as the vast majority of the first-phase capex is still ahead of us.Lamda Development is a real estate development group based in Greece. Co.'s main activities comprise investment, development and maintenance of innovative real estate projects. Co. operates in Greece, as well as in other neighboring Balkan countries mainly Romania, Bulgaria, Serbia, Montenegro. Co.'s operations are organized along two business segments: Real Estate; and Marine Services. Co. is a subsidiary of Lamda Holdings.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.